diff --git a/pkg/v1/tkg/test/tkgctl/shared/e2e_common.go b/pkg/v1/tkg/test/tkgctl/shared/e2e_common.go
index 48b8f8376d0..0eaf7a67439 100644
--- a/pkg/v1/tkg/test/tkgctl/shared/e2e_common.go
+++ b/pkg/v1/tkg/test/tkgctl/shared/e2e_common.go
@@ -10,6 +10,7 @@ import (
 	"math/rand"
 	"os"
 	"path/filepath"
+	"strings"
 	"time"
 
 	"sigs.k8s.io/cluster-api/util"
@@ -18,9 +19,12 @@ import (
 	. "github.com/onsi/ginkgo"
 	. "github.com/onsi/gomega"
 
+	runv1alpha3 "github.com/vmware-tanzu/tanzu-framework/apis/run/v1alpha3"
+	tkgclient "github.com/vmware-tanzu/tanzu-framework/pkg/v1/tkg/client"
 	"github.com/vmware-tanzu/tanzu-framework/pkg/v1/tkg/constants"
 	"github.com/vmware-tanzu/tanzu-framework/pkg/v1/tkg/test/framework"
 	"github.com/vmware-tanzu/tanzu-framework/pkg/v1/tkg/tkgctl"
+	"github.com/vmware-tanzu/tanzu-framework/pkg/v1/tkg/utils"
 )
 
 type E2ECommonSpecInput struct {
@@ -199,6 +203,49 @@ func E2ECommonSpec(ctx context.Context, inputGetter func() E2ECommonSpecInput) {
 				By(fmt.Sprintf("Get management cluster resources created by addons-manager for workload cluster %q on management cluster %q", clusterName, input.E2EConfig.ManagementClusterName))
 				clusterResources, err = getManagementClusterResources(ctx, mngclient, mngDynamicClient, mngAggregatedAPIResourcesClient, mngDiscoveryClient, namespace, clusterName, infrastructureName)
 				Expect(err).NotTo(HaveOccurred())
+
+				By(fmt.Sprintf("Upgrade workload cluster %q", clusterName))
+				err, currentTkrVersion := getCurrentTkrVersion(tkgCtlClient, clusterName, namespace)
+				Expect(err).ToNot(HaveOccurred())
+				err, nextAvailableTkrVersion := getNextAvailableTkrVersion(ctx, currentTkrVersion, mngtempFilePath)
+				Expect(err).ToNot(HaveOccurred())
+				err = tkgCtlClient.UpgradeCluster(tkgctl.UpgradeClusterOptions{
+					ClusterName: clusterName,
+					Namespace:   namespace,
+					TkrVersion:  nextAvailableTkrVersion,
+					SkipPrompt:  true,
+				})
+				Expect(err).ToNot(HaveOccurred())
+
+				Eventually(func() bool {
+					// Check should pass when the cluster's current tkr version is the same as next available version
+					// and the cluster is in running phase.
+					err, currentTkrVersion := getCurrentTkrVersion(tkgCtlClient, clusterName, namespace)
+					if err == nil && currentTkrVersion == nextAvailableTkrVersion {
+						describeClusterOptions := tkgctl.DescribeTKGClustersOptions{
+							ClusterName: clusterName,
+							Namespace:   namespace,
+							ShowDetails: true,
+						}
+						results, err := tkgCtlClient.DescribeCluster(describeClusterOptions)
+						if err == nil && results.Cluster.Status.Phase == string(tkgclient.TKGClusterPhaseRunning) {
+							return true
+						}
+					}
+					return false
+				})
+
+				By(fmt.Sprintf("Get k8s client for upgraded workload cluster %q", clusterName))
+				wlcClient, _, _, _, err = getClients(ctx, tempFilePath)
+				Expect(err).NotTo(HaveOccurred())
+
+				By(fmt.Sprintf("Verify addon packages on workload cluster %q matches clusterBootstrap info on management cluster %q", clusterName, input.E2EConfig.ManagementClusterName))
+				err = checkClusterCB(ctx, mngClient, wlcClient, input.E2EConfig.ManagementClusterName, constants.TkgNamespace, clusterName, namespace, infrastructureName, false)
+				Expect(err).To(BeNil())
+
+				By(fmt.Sprintf("Get management cluster resources created by addons-manager for workload cluster %q on management cluster %q", clusterName, input.E2EConfig.ManagementClusterName))
+				clusterResources, err = getManagementClusterResources(ctx, mngClient, mngDynamicClient, mngAggregatedAPIResourcesClient, mngDiscoveryClient, namespace, clusterName, infrastructureName)
+				Expect(err).NotTo(HaveOccurred())
 			}
 		}
 
@@ -223,3 +270,73 @@ func E2ECommonSpec(ctx context.Context, inputGetter func() E2ECommonSpecInput) {
 		By("Test successful !")
 	})
 }
+
+func getNextAvailableTkrVersion(ctx context.Context, currentTkrVersion, mngKubeConfigFilePath string) (error, string) {
+	mngClient, _, _, _, err := getClients(ctx, mngKubeConfigFilePath)
+	if err != nil {
+		return err, ""
+	}
+	tkrList := runv1alpha3.TanzuKubernetesReleaseList{}
+	mngClient.List(ctx, &tkrList)
+	tkrs := tkrList.Items
+	availableTkrs := make(map[string]string)
+	for i := range tkrs {
+		compatible := ""
+		for _, condition := range tkrs[i].Status.Conditions {
+			if condition.Type == runv1alpha3.ConditionCompatible {
+				compatible = string(condition.Status)
+			}
+		}
+		labels := tkrs[i].Labels
+		activeStatus := "True"
+		if labels != nil {
+			if _, exists := labels[runv1alpha3.LabelDeactivated]; exists {
+				activeStatus = "False"
+			}
+		}
+		if !strings.EqualFold(compatible, "true") || !strings.EqualFold(activeStatus, "true") {
+			continue
+		}
+
+		compareResult, err := utils.CompareVMwareVersionStrings(currentTkrVersion, tkrs[i].Spec.Version)
+		if err != nil {
+			return err, ""
+		}
+
+		if compareResult < 0 {
+			availableTkrs[tkrs[i].Spec.Version] = tkrs[i].Name
+		}
+
+	}
+	var tkrVersions []string
+	for version := range availableTkrs {
+		tkrVersions = append(tkrVersions, version)
+	}
+	if len(tkrVersions) < 1 {
+		return fmt.Errorf("no TKR version available for upgrade"), ""
+	}
+	nextAvailableVersion := tkrVersions[0]
+	for _, newVersion := range tkrVersions {
+		compareResult, err := utils.CompareVMwareVersionStrings(nextAvailableVersion, newVersion)
+		if err != nil {
+			return err, ""
+		}
+		if compareResult > 0 {
+			//newVersion is lower
+			nextAvailableVersion = newVersion
+		}
+	}
+	return nil, nextAvailableVersion
+}
+func getCurrentTkrVersion(tkgCtlClient tkgctl.TKGClient, clusterName, clusterNamespace string) (error, string) {
+	describeClusterOptions := tkgctl.DescribeTKGClustersOptions{
+		ClusterName: clusterName,
+		Namespace:   clusterNamespace,
+		ShowDetails: true,
+	}
+	results, err := tkgCtlClient.DescribeCluster(describeClusterOptions)
+	if err != nil {
+		return err, ""
+	}
+	return nil, results.ClusterInfo.TKR
+}